Underwriting Calculator
The Underwriting Calculator turns NOI, value, loan amount, rate, and amortization into DSCR, LTV, and debt yield — the three ratios commercial lenders underwrite to.
What it does
- DSCR, LTV, and debt-yield computed live from NOI, value, loan amount, rate, and amortization period
- Live read on which ratios clear common lender minimums and which are tight
- Interactive: adjust any input and watch the ratios move — useful for sizing the loan a property can support
- Pairs with the glossary definitions of each metric for plain-English explanations
Frequently Asked Questions
What ratios does the calculator compute?
It computes the three metrics most commercial lenders underwrite to: debt service coverage ratio (DSCR = NOI divided by annual debt service), loan-to-value (LTV = loan amount divided by property value), and debt yield (NOI divided by loan amount). Each updates live as you change inputs.
What DSCR and LTV do lenders typically require?
Requirements vary by lender, property type, and market, but most commercial and multifamily programs look for a DSCR of at least 1.20x–1.25x and an LTV at or below 70–80%. Bridge and value-add lenders can be more flexible when there is a credible stabilization plan.
Can I use it to size a loan?
Yes. Because the ratios update live, you can work backwards: hold NOI constant and adjust the loan amount until DSCR and LTV both clear the thresholds you are targeting. That gives a realistic ceiling for the debt a property can support before you approach lenders.
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